Tihama board recommends capital cut by 42.9%, SAR 50 mln rights issue

Logo of Tihama

Tihama Advertising and Public Relations Co.’s board of directors recommended, in a meeting on July 13, a 42.9% capital cut from SAR 175 million to SAR 100 million, according to a filing to Tadawul.

The move aims to restructure the company’s capital to offset accumulated losses.

The recommendation to reduce the company's capital is subject to the approval of the related official authorities and the EGM.

An announcement will be made upon appointing the financial advisor, as well as when the capital reduction request and the rights issue files are submitted to the Capital Market Authority (CMA).

Meanwhile, the board of directors recommended a capital increase through SAR 50 million rights issue to be implemented following the capital cut.

The recommendation to increase the company's capital is subject to the approval of the related official authorities and the approval of the EGM.

The recommendation to increase the company's capital is subject to the approval of the related official authorities and Tihama’s EGM.  

In July 2020, Tihama increased its capital from SAR 75 million to SAR 175 million, through a SAR 100 million rights issue, according to data compiled by Argaam.

For More IPOs